Chapter 5
New York Tri-State Data Center Market
North America Data Center Trends H1 2026
3 Minute Read
3 Minute Read
Colocation Insights
- The New York and New Jersey data center market is defined by a persistent imbalance, as demand continues to rise while supply remains constrained.
- Occupiers seeking more than 5 MW of contiguous space have few options. This scarcity now defines the market and its pricing.
- With no meaningful supply relief in sight, rates continue to climb and there is little indication that this trend will change soon.
Market Trends
- Regulatory policy is tightening the market further. New York passed a state-level moratorium on data centers larger than 50 MW in July and New Jersey is currently considering passing a similar measure this year.
- As a result, bringing new large-scale capacity online will become increasingly difficult and further pressure existing inventory.
Notable Activity
- A major financial services firm acquired a 249,000-sq.-ft. data center, choosing to own its capacity rather than compete for scarce leasing opportunities.
- Iron Mountain announced a 23-MW battery energy storage system project to ease on-site grid constraints at its campus in Edison, New Jersey, reflecting a growing trend of operators investing in their own power resilience.
Figure 1: Historical Market Information
Figure 2: Historical Supply and Demand
Figure 3: % of Total Primary Market Inventory
Figure 4: Market Fuel Mix
Figure 5: Average Asking Rates
Report Contacts
Property Type
Data Center Solutions
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